There are many hydrocarbon producing regions around the world. These regions may produce hydrocarbons by conventional means or by non-conventional means as production from conventional sources declines. For example, conventional means include mining coal, drilling wells and pumping crude oil or natural gas to the surface. Non-conventional means include, for example, recovering bitumen and heavy oil by thermal stimulation or mining, biomass production and the like. In all instances, the producing regions are large producers of fossil and non-fossil carbon fuels, which when burned, emit carbon dioxide which is becoming more and more regulated as the link between carbon dioxide emissions and global warming becomes understood.
A prime example of such a producing region is the Western Canadian Sedimentary Basin which contains immense reserves of unconventional hydrocarbons (principally in the form of bitumen and heavy oil) as well as large reserves of conventional oil & gas, coal and abundant biomass.
These producing regions are increasingly coming under regulatory pressures to reduce emissions of carbon dioxide, especially fossil carbon dioxide, wherein each producer may be regulated by a carbon accounting system. For example, a producer may be given the choice of physically reducing their carbon dioxide emissions, purchasing a carbon credit in a cap and trade system, paying a carbon tax in a carbon tax system or some combination of each. For example, a producer may choose to reduce their fossil carbon dioxide emissions by installing on-site carbon capture and sequestration facilities. In the case of many producers, purchasing or earning a carbon credit or paying a carbon tax may be a less costly and, in the short term, a less risky course of action than installing an on-site carbon capture and sequestration facility.
Ultimately, all the producers in a producing region must act together to effect a real and significant reduction of carbon dioxide emissions. Otherwise, acquiring a carbon credit or paying a carbon tax can become prohibitively expensive over time for producers especially small producers who cannot afford to reduce their carbon dioxide emissions by installing on-site carbon capture and sequestration facilities.
There remains, therefore, a need for alternative methods of managing the reduction of carbon dioxide in a producing region that can provide an alternative to such carbon accounting strategies as acquiring a carbon credit, paying a carbon tax or installing on-site capture and sequestration facilities.